Air Passenger Duty To Rise by 8 Per Cent From April 2012 Affecting the Caribbean holidays industry
The British chancellor, George Osborne, announced yesterday that APD would be increased by eight per cent in a double inflation rise. The rise will apply from April, 2012 and will significantly affect the price of flights for Caribbean holidays.
Despite receiving an open letter from aviation, tourism and trade unions, calling for a freeze on the APD increase, the British chancellor has decided to go ahead with the eight per cent double inflation rise on the tax.
The rise in APD will affect the price of flights coming in and going out of the UK and travellers planning Caribbean holidays will see a hike in the price of flights to the region as airlines are forced to add the hike to their fares.
The APD rise will come into effect from 1st April, 2012 and is disappointing news for tourism and aviation leaders who fought to scrap the duty completely.
"The government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden,” stated Mark Tanzer, the Chief Executive of the Association of British Travel Agents.
Image by: *michael sweet*, on Flickr
APD was introduced in 1994 and is charged according to how far away the capital of a country is from the United Kingdom. Despite Florida and Hawaii being located further from the UK, the country’s capital New York is closer than many Caribbean capital cities, so passengers taking holidays to the Caribbean are charged more.
Last year, the British chancellor, George Osborne, announced a freeze in APD for 12 months but it seems that passengers travelling in and out of Britain are now paying for that freeze with the highest flight taxes in the world.
Osborne also confirmed in his Budget speech yesterday that the APD would rise again with the rate of inflation in April, 2013.
Image by: *michael sweet*, on Flickr
The worst hit travellers will be those planning long haul trips such as holidays in the Caribbean, the United States, the Middle East, South Africa, South America and Australia.
The cost of APD for a family of four flying to the United States or Egypt has risen from £240 to £260, and the same family taking flights to the Caribbean or South Africa, will now pay £324, compared to the previous £300.
In the open letter which was delivered to the British Chancellor prior to the Budget announcement, tourism, aviation and trade unions urged the government to scrap the duty, saying that by removing it, an additional 91,000 British jobs could be created and £4.2 billion would be added to the economy in just 12 months.
Image by: worldtraveller5, on Flickr
The news is also a blow for the Caribbean tourism industry which is only just beginning to recover from the global recession. The region’s economy heavily relies on travellers going on holidays in the Caribbean and the increased APD could see families heading to destinations that are closer to the UK or to the United States.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 09:00 - 20:00 GMT
Popular Holidays In Caribbean and Costa Rica Browse all
With great watersports galore, your winter-sun holiday can be one to remember in Cuba
- Try your hand at some adrenaline-pumping water sports including sailing, windsurfing and diving
- If you’re not up for a night on the tiles you can simply chill out at the resort and enjoy the evening’s entertainment
- If you’re a night-owl you won’t be able to resist Varadero’s buzzing nightlife
A superb combination of great accommodation and exciting activities make this resort one of Cuba's hottest properties
- Previous winner of the Trip Advisor Certificate of Excellence, and ranked in the top 5 Hotels in Varadero
- Full range of Spa treatments for a more relaxing break, or a selection of water and land sports to choose from for the more active traveller
- Enjoy a range of tours and excursions
- Couples can benefit from a free bottle of sparkling wine and a romantic dinner for two, plus a 30 min massage per couple
Use up to $2500 resort credit to indulge in spa treatments, golf sessions or a selection of excursions that will make your Cancun holiday truly unforgettable.
- Incredible January exclusive - Receive a free upgrade to the next room type when booking with The Holiday Place
- Don't miss out on this incredible offer Kids 17 and under stay, play and eat free
- The Illusionists are appearing at the resort from 22nd December - 3rd Jan & The amazing Backstreet Boys are appearing on the 29th December*
- Awesome resort credits with up to $2500 to spend on spa treatments, dolphin swims, access to the Wet 'N' Wild waterpark and much more
A couples' special - enjoy the perfect mix of history, local culture and laidback beach retreat for the perfect romantic Cuban experience.
- Enjoy all kind of the Spa treatments, water and land sports at Blau Varadero
- Fantastic views to the ocean from the modern and elegant rooms with balcony or terrace
- The perfect location of Blau Varadero beside the pristine sandy beach
Combine exploring the old dimes of Havana with a refreshing beach retreat in Vardero on an unforgettable twin centre...
Start your holiday at The Melia Habana Hotel, located in the heart of the elegant Miramar district, overlooking the sea....
Take a holiday to the Caribbean resort of Cancun in Mexico. In the magnificent Moon Palace Cancun you will be perfectly...
Create unforgettable memories at the heart of Barbados' western coast at a collection of one bedroom apartments. Halcyon...
St Lawrence Gap is famous for its many restaurants, great shopping and lively nightlife. This 1.3 km stretch of road,...
You can enjoy all the aspects of this charming island, as the elegant eco-friendly property is located near all the...